Question and answer
If the inflation rate in 1996 was tripled and the house price index was only affected by inflation, what would be the House Price Index Outside the Capital starting in 1997?
Hyperinflation occurs when there is a continuing (and often accelerating) rapid increase in the amount of money that is not supported by a corresponding growth in the output of goods and services. The price increases that result from the rapid [ money creation creates a vicious circle, requiring ever growing amounts of new money creation to fund government activities. Hence both monetary
inflation and price inflation proceed at a rapid pace. Such rapidly increasing prices cause widespread unwillingness of the local population to hold the local currency as it rapidly loses its buying power. Instead they quickly spend any money they receive, which increases the velocity of money flow; this in turn causes further acceleration in prices.[6] This results in an imbalance between the supply and demand for the money (including currency and bank deposits), causing rapid inflation. Very high inflation rates can result in a loss of confidence in the currency, similar to a bank run. Usually, the excessive money supply growth results from the government being either unable or unwilling to fully finance the government budget through taxation or borrowing, and instead it finances the government budget deficit through the printing of money.[7] Governments have sometimes resorted to excessively loose monetary policy, as it allows a government to devalue its debts and reduce (or avoid) a tax increase. Inflation is effectively a regressive tax on the users of money,[8] but less overt than levied taxes and is therefore harder to understand by ordinary citizens. Inflation can obscure quantitative assessments of the true cost of living, as published price indices only look at data in retrospect, so may increase only months later. ]
Expert answered|dkecter|Points 50|
Question
Asked 11/18/2012 2:10:51 PM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
19,144,729 questions answered
Popular Conversations
The slope of the line whose equation is 5x + 3y = -2 ...
Weegy: The slope of the line whose equation is 5x + 3y = -2 is a.) -5/3 User: The y-intercept of the line whose ...
1/24/2015 10:20:25 PM| 6 Answers
What is the value of b^2 - 4ac for the following equation? 2x^2 - 2x ...
Weegy: 10x^2 - 19x + 6 = 0 The solution formula is x = [-b ? sqrt (b^2 - 4ac)]/2a The numerators of the solution is: ...
1/24/2015 9:48:19 AM| 4 Answers
Which of the following constants can be added to x^2 - 3x to form a ...
Weegy: 8x^2 - 2x = 1; 8x^2 - 2x - 1= 0; (4x + 1)(2x - 1) = 0 (4x + 1) = 0; 4x = -1, x = -1/4 or (2x - 1) = 0; 2x = 1; ...
1/24/2015 9:39:47 AM| 3 Answers
Which of the following points is a solution to the system of ...
Weegy: The following points of(-3 , -2) is a solution to the system of equations shown y - x = -1 x + y = -5 . ...
1/24/2015 10:34:32 PM| 3 Answers
8y - 1 = x 3x = 2y Solve the system of equations by ...
Weegy: 2x + y = 6; y = 3x + 4 The resulting equation is 2x + (3x + 4) = 6. User: 2x + y = 7 y = x + 1 When the ...
1/24/2015 10:54:55 PM| 3 Answers
Brenda Lee has received a $10,000 gift from her mother and is trying ...
Weegy: B. return User: Terri Hamilton has just received $30,000 from an uncle who died and is trying to decide how to ...
1/24/2015 2:01:50 PM| 2 Answers
The graph of which of the following equations contains the points (2, ...
Weegy: 2x - y = 2 x + y = 4 3x = 6; x = 6/3; x = 2 2x - y = 2; 2(2) - y = 2; 4 - y = 2; -y = 2 - 4; -y = -2; y ...
1/24/2015 9:12:35 PM| 2 Answers
Weegy Stuff
S
L
Points 1655 [Total 1676]| Ratings 0| Comments 1655| Invitations 0|Offline
S
L
P
L
P
Points 1229 [Total 6506]| Ratings 0| Comments 1229| Invitations 0|Offline
S
1
L
1
L
P
P
L
P
P
Points 563 [Total 15574]| Ratings 0| Comments 563| Invitations 0|Offline
S
L
Points 438 [Total 1119]| Ratings 2| Comments 418| Invitations 0|Offline
S
1
L
L
Points 178 [Total 6878]| Ratings 0| Comments 178| Invitations 0|Online
S
P
C
L
P
L
1
Points 90 [Total 6678]| Ratings 1| Comments 80| Invitations 0|Offline
S
Points 87 [Total 102]| Ratings 0| Comments 87| Invitations 0|Offline
S
L
Points 73 [Total 1634]| Ratings 0| Comments 73| Invitations 0|Online
S
Points 63 [Total 445]| Ratings 0| Comments 63| Invitations 0|Offline
S
Points 50 [Total 52]| Ratings 0| Comments 0| Invitations 5|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.